MINUTES of the Fourth meeting of the EU-Moldova Parliamentary Association Committee 22 May, 2017, 13:00-18:00 Chișinău

Transcription

1 EU-Moldova Parliamentary Association Committee MINUTES of the Fourth meeting of the EU-Moldova Parliamentary Association Committee 22 May, 2017, 13:00-18:00 Chișinău The meeting opened at 13:00 on Monday, 22 May 2017 and was chaired by the Co-chairs of the Parliamentary Association Committee EU-Republic of Moldova, Mr Andy Cristea (Delegation of the European Parliament) and Mr Mihai Ghimpu (Delegation of the Republic of Moldova). 1. Adoption of the draft agenda The agenda was adopted. 2. Adoption of the draft minutes of the 3rd meeting of the EU-Moldova Parliamentary Association Committee (PAC) held in Strasbourg on December 2016 The draft minutes were approved, with the mention of Mr Ion Balan regarding the modification of a technical error in the text. 3. Discussion on the EU-Republic of Moldova cooperation and the current stage of the implementation of the Association Agreement Mr Andrian CANDU, Chairman of the Parliament of the Republic of Moldova In his opening statement, Mr Andrian Candu reiterated that the AA implementation is priority no.1 of the Parliament of the Republic of Moldova, and reviewed the efforts made in 2016 to overcome the economic and politic crisis of the country. In this context, the commitment on the implermentation of sectoral reforms included in the Roadmap was mentioned, an exercise that involved the synchronisation of the Parliament and Government agendas. Further, Mr Candu mentioned that another important stage was to regain the confidence and to maintain the cooperation with the IMF. At the end of his speech, the Speaker reported about the priorities from the political agenda of the Republic of Moldova, such as the recovery of the financial and banking system, justice reform and fight against corruption, support of business environment, development of the energy sector, etc. Mr Mihai GHIMPU, Co-chair of the Committee The Co-chair referred to the commercial-economic cooperation between the Republic of Moldova and the EU, benefits of the economic integration, DCFTA implementation, free movement within the European space, as well as the implementation of the reform agenda in the priority areas. Another topic addressed by Mr Ghimpu was the investigation of the banking fraud, the outcomes of the activity of Kroll Company, the modification of the legal framework related to the banking system from the Republic of Moldova. Further, Mr Co-chair noted the 1

2 importance of the public administration reform, referring to the reduction of the number of ministries and to the decrease of the number of civil servants paid from public money. Concerning the media, Mr Mihai Ghimpu spoke about the legislative amendments and completions to the Audiovisual Code aiming at promoting and encouraging local production. Mr Andi CRISTEA, Co-chair of the Committee Mr Cristea stressed that the European Parliament supports the progress of the Republic of Moldova on the path of political association and economic integration with the European Union. The Co-chair also pointed out that additional efforts are needed in some areas, but the overall rating is one of progress, compared to the moment when the current government began its mandate. Further, Mr Cristea underlined the positive impact of the implementation of the AA and of the Free Trade Agreement for the Republic of Moldova. Concerning the topics included on the agenda of the Meeting, Mr Co-chair noted that the fight against corruption still remains an important goal, all the more so as the corruption affects the good functioning of the state. Related to the change of the electoral system, Mr Cristea specified that it is the sovereign attribute of each state, but the political decision from Chișinău must take into account the comments of the Venice Commission. Mrs Daniela MORARI, Deputy Minister of Foreign Affairs and European Integration In her statement, Mrs Morari noted that the main priority for the Government of Moldova is the implementation of the Association Agreement. Mrs Daniela Morari mentioned that this year, the Republic of Moldova has started a new stage in the implementation of the EUMoldova AA, meaning the new National Action Plan for the implementation of the Agreement for , a new document for the next 3 years of implementation. The new National Action Plan includes 3 types of documents: the Legislative plan of the Parliament, the National Legislation Harmonization Plan and the respective document for the implementation of the Agreement. Furthermore, Mrs Morari mentioned that another priority is the negotiation of the new Association Agenda. Other two priorities mentioned by Mrs Deputy Minister are the Strategy on Communication and the cooperation with the civil society. Mr Pirkka TAPIOLA, Ambassador, Head of the European Union Delegation to the Republic of Moldova Mr Tapiola stated that on 30 March this year, the EU published the first Association implementation report. In its conclusions, the Report underlined the fact that 2016 had been a year of new beginnings. On 31 March, the Association Council allowed taking stock of the progress of reforms and conveying very strong EU messages of encouragement. The Head of the EU Delegation said that the Government of the Republic of Moldova and the Parliament have undertaken many legislative steps, particularly in the course of The reform process has been relaunched. The political stability allows for new beginnings. The reform efforts were particularly visible in the banking sector, and this contributed to restoring the macrofinancial stability, and also enabling the development partners to relaunch their assistance. Also, Mr Tapiola mentioned that it is important to continue working on fighting with the concentration of the media ownership, as well as the de-monopolization of the advertising market, it is important to work on media legislation to bring it in line with the EU, Council of Europe and OSCE standards. Other subjects mentioned by Mr Tapiola refered to the integration of people belonging to national minorities, the developments regarding Gagauzia and Taraclia, the situation in the Transnistria. With regard to the implementation of the DCFTA, Mr Tapiola mentioned the growing level of trade, Moldova s exports to the EU, and new investments coming in. However, he specified that it is important to continue improving the market conditions in the field of energy, and the 2

3 access to finance for small and medium-sized enterprises. 4. Commercial and economic cooperation with the EU; Macro-financial assistance provided for the Republic of Moldova Mr Gheorghe MOCANU, MP (EPPM) In his presentation, Mr Mocanu referred to the relations of the Republic of Moldova with the IMF, the revision of the forecast of economic growth, the level of foreign investments, the increase of exports to the EU, as well as the export quotas. With regard to macro-financial assistance, the MP emphasized that one of the main factors related to macro-financial stability, is the creation of additional instruments provided to the National Bank to ensure prompt interventions in the banking market. In this context, Mr Mocanu mentioned that, in the financial and banking field, attention was paid to the transparency of shareholders, the fight against money laundering and terrorism financing, the liberalisation of foreign exchange operations on the capital market and, most importantly, the consolidation of the National Bank s oversight function. At the end of the presentation, referring to the postponement of macro-financial assistance, the MP said that the preconditioning of the installments is argued, but the risk of excessive deferral is major, especially with the reduction of the possibility to cover social expenses and the budget deficit. Mrs Rebecca HARMS, MEP (Greens/EFA) Mrs Harms focused on trade issues and specifically on the macro-financial assistance for Moldova, mentioning that some questions remain to be discussed, such as the electoral reform and the recommendations of the Venice Commission on this. Also, Mrs Harms referred to the statement of the Moldovan President, who declared that 50% of EU money transferred to Moldova disappeared in dark shares, which raised many doubts. In this regard, Mrs Harms mentioned that the EP realizes how crucial is the macro-financial support for Moldova, however there are still many questions pending. Mr Knut FLECKENSTEIN, MEP (S&D) With regard to the electoral reform, Mr Fleckenstein noted that it is not up to the European Parliament to say what kind of electoral system is acceptable, as long as the Venice Commission considers that it is in accordance with the EU rules and standards. Further Mr Fleckenstein addressed a question on the perspectives of the economic relations development between the Republic of Moldova and the Russian Federation Mr Andrzej GRZYB, MEP (EPP) Mr Grzyb referred to Poland s experience in achieving the European path, the signing of the Association Agreement and the Free Trade Agreement. Further, the MEP highlighted one of the main privileges that the Republic of Moldova enjoys, namely the liberalised visa regime, and referred to the situation of Ukraine, both of which are members of the Eastern Partnership. In this context, Mr Grzyb emphasised the importance of informing the civil society about the achievements and benefits of the Association Agreement. Also, the MEP noted that another important factor for the country s economy is the financial flow, which comes from Moldovan citizens living abroad. 5. Current status of the banking system of the Republic of Moldova 3

4 Mr Sergiu CIOCLEA, Governor of the National Bank In his presentation, the Governor referred to the implementation of the legislative packages included in the Action Plan for the implementation of the AA. Mr Cioclea also talked about the problems of the banking sector surfaced in 2016, such as the quality and transparency of the shareholders in commercial banks, corporate governance, the accumulation of nonperforming loans and the defective legal framework, which does not enable the National Bank to carry out all the supervision measures. The Governor then specified that the National Bank, with the support of the Moldovan Parliament, undertook a series of measures for the recovery of the situation in all the mentioned areas. Mr Cioclea also mentioned the tightening of sanctions at the level of bank managers and shareholders. The importance of adopting the Law on bank resolution and recovery has been emphasized, which allowed the National Bank to intervene in taking over temporary control in the second bank of the country, without disturbing its proper functioning. Another important issue addressed by the Governor was the "Kroll" investigation, mentioning that international procedures were initiated to block the money in order to obtain additional disclosures and to obtain repayment from financial institutions that have participated in this scheme of fraud and money laundering. Mr Andi CRISTEA, Co-chair Mr Cristea emphasized the efficient manner in which the National Bank succeeded in stabilising the financial and banking system in the Republic of Moldova. At the same time, the Co-chair outlined the importance of the cooperation of the National Bank of Moldova with the National Bank of Romania and with the Central Bank of the Netherlands, which supported the strengthening of the capacity of the central bank of the Republic of Moldova in the banking regulation and supervision area. The Co-chair then asked for the Governor's opinion on the possibility of public disclosure, at least partially, of certain issues from Kroll reports. Mr Sergiu CIOCLEA, Governor of the National Bank Mr Cioclea said that a draft Kroll report currently existed, which implied a certain list of judicial actions in several countries. At the insistence of the Kroll team, the National Bank shall not disclose any information that might jeopardize court proceedings. At the same time, the fourth informative note on the progress of the Kroll investigation was published on the official website of the National Bank. Mr Andrzej GRZYB, MEP (EPP) The MEP requested the opinion of the Governor of the National Bank on the Deposit Guarantee System and the Guarantee Fund, which guarantees the possibility of deposit reimbursement in case of insolvency payments. Another question raised by Mr Grzyb was whether the National Bank of Moldova is monitoring the country's credit system through nonbank lending institutions. Mr Sergiu CIOCLEA, Governor of the National Bank Mr Cioclea replied that the National Bank of Moldova agreed with the IMF to have a thorough analysis of the system, which would include 3 directions: firstly, to assess the coverage level; secondly, to determine whether it can be opened up to small and medium-sized enterprises and other entities; thirdly, the National Bank would have to establish the connection between this deposit guarantee fund and the bank resolution fund, which is planned to be created in the transition period. With reference to the non-banking financial sector, Mr Cioclea agreed that this sector was developing quickly, which proved the existence of demand. Mrs Rebecca HARMS, MEP (Greens/EFA) Mrs Harms referred to the Kroll investigation, mentioning that the conclusion is very much 4

5 expected. Also Mrs Harms asked for an update regarding the request of the IMF for transparency of the structures of the three major banks. Mr Sergiu CIOCLEA, Governor of the National Bank With regard to the Kroll investigation, Mr Cioclea said that the most accurate information was in the fourth informational note placed on the National Bank website. Kroll team informed the National Bank that based on the international experience, the recovery phase lasts at least from 18 to 24 months; before opening a case, in order to convince the judges that the assets have to be frozen, additional information must be disclosed. With regard to the shareholders transparency, the Governor said that the previous year was still quite dynamic, and the shares were blocked in two of those banks and were put on sale. As for the third bank, complementary information was requested. 6. Reforms in the area of justice and corruption fighting Mr Vladimir CEBOTARI, Minister of Justice Mr Cebotari spoke about the implementation of the Justice Sector Reform Strategy, which was put in place in the period of and covered over 480 planned actions. In his presentation, the Minister referred to the legislative acts adopted to prevent and combat corruption, the number of criminal cases on corruption, and the number of high-level officials accused on corruption cases. As a result, these efforts have served to restore citizens confidence in law institutions, including the business environment, but also to recover assets that had been the subject of crime and to reduce the damage caused. Mr Cebotari then referred to the priorities to be implemented in this area, such as the implementation of the Law on Asset Recovery; ensuring the functionality of the National Integrity Authority; the implementation of the new Law on the Prevention of Money Laundering, combating financing of terrorism; and the digitization of justice. Mr Igor VREMEA, MP (DPM) In his turn, Mr Vremea referred to the progress registered in the implementation of the National Action Plan for the fulfillment of the Association Agreement, and mentioned the adoption of the National Integrity and Anticorruption Strategy for by the Parliament, the adoption of the Law on the Agency for Criminal Assets Recovery, the adoption of the Law on Prevention of Money Laundering and Terrorism Financing in the first reading, and the examination of the Law on Integrity in the second reading. Mrs Rebecca HARMS, MEP (Greens/EFA) Mrs Harms highlighted that the European officials had many concerns on the issues of corruption fighting, mentioning the citizens from the Republic of Moldova, who either left the country or were under pressure because of their work (ex. journalists, lawyers). In this regard, Mrs Harms mentioned that it would be useful to have a follow up dialogue with deeper exchange of views on the cases (e.g., the case of Mrs Ursachi) that have been presented by the lawyers and also by the international human rights organizations. Mr Vladimir CEBOTARI, Minister of Justice Referring to Mrs Harms question, Mr Cebotari specified that some individuals targeted in criminal cases were trying to victimize themselves, saying that these cases had a political connotation. In the case of Mrs Ursachi, who is targeted in a murder case occurred back in 5

6 , having the quality of the accused, the victim s son has repeatedly requested the reopening of the case. 7. Respect for human rights and fundamental freedoms, in particular freedom of the media Mr Serghei SÎRBU, MP (DPM) Mr Sîrbu said that on 30 March 2017, the Parliament of Moldova, with a majority of over 80 votes, adopted the amendments to the Audiovisual Code, these amendments being based on the Roadmap of priority actions for the implementation of the Association Agreement. Thus, starting with 1 October this year, the TV channels from the Republic of Moldova will be compelled to have at least 8 hours of local production per day. Therefore, the aim was to develop local production, pluralism of opinion and, indirectly, fight propaganda. As for transparency in the media, the fight with monopoly in the media, Mr Sîrbu said, at the same time, that from that moment onwards no individual or legal entity was entitled to hold more than two broadcasting licenses. At the end of the presentation, Mr Sîrbu emphasized the importance of adopting the new Audiovisual Code in line with the new EU directives. Mrs Rebecca HARMS, MEP (Greens/EFA) Regarding the independence of the media, Mrs Harms stated that there was no EU legislation, applied on media, and that it was largely in the competence and responsibilities of the member states. Concerning the media reforms in the Republic of Moldova, Mrs Harms asked if the transaction on two channels was enough change to guarantee independence or more pluralism in the structure of the ownership of media in the country. Mrs Miapetra KUMPULA-NATRI, MEP (S&D) Mrs Kumpula-Natri noted that it was regretful that the Republic of Moldova was on the 56th position before, while, at the moment, it was ranked 76th in the Press Freedom Index. In this regard, Mrs Kumpula-Natri asked if there were some other explanations, beside the ownership of the media, which led to the Press Freedom Index downsizing. Mr Knut FLECKENSTEIN, MEP (S&D) Mr Fleckenstein referred to the importance of building up a really independent public media outlet, where all relevant parts of society would be involved. With regards to propaganda, Mr Fleckenstein drew attention to the German experience, where media itself watches over the TV content. In his concluding remarks, Mr Fleckenstein recommended thinking about a strong public TV, which would be effective enough to make clear what is really propaganda and what is an opinion that is allowed. 8. Reform in the electoral area Mr Tudor DELIU, MP (LDPM) Referring to the electoral reform, Mr Deliu mentioned that, on 2 February 2017, a number of 18 NGOs appealed for the creation of a working group responsible for drafting proposals of amendments to the Electoral Code and related legislation. Respectively, the appeal called for the inclusion in this working group of representatives of the parliamentary factions, representatives of civil society, the Central Electoral Commission, as well as representatives of extra-parliamentary parties. Mr Deliu further stated that this working group was formed by the Standing Bureau of the Parliament within tight deadlines, and soon a draft law was passed in the Parliament for changing the electoral system into a uninominal system. In the same 6

7 context, Mr Deliu specified that the draft law was included on the agenda by violating the legal provisions, without the report of the Lead Committee or the opinions of the other Committees. At the same meeting it was decided to merge the draft for the uninominal system with another draft law, namely, for the mixed system. The Venice Commission was also informed about this. Mr Deliu mentioned that the drafts for the electoral system modification caused a great deal of disagreement in society, and the protests, which were organized for almost a week in front of the Parliament by civil society, called for the rejection of the initiatives to modify the electoral system, stating that the modification of the electoral system is a blow to the rule of law and democracy in the Republic of Moldova. Mr Knut FLECKENSTEIN, MEP (S&D) On the subject of the electoral reform, Mr Fleckenstein said that the change of the electoral system must be decided in compliance with the recommendations of the Venice Commission and ODIHR. Mr Serghei SÎRBU, MP (DPM) Mr Sîrbu confirmed that the two draft laws, the one for the uninominal system proposed by the Democratic Party and the other one for the mixed system advanced by the Party of Socialists, were merged. As a reply to the statement of Mr Deliu, the MP said that it was decided to submit a single draft law, at the request of the Venice Commission inclusively. Mr Sîrbu then stated that the initiative to modify the electoral system had been debated in 4 to 5 sessions and was to be further discussed in order to obtain the largest consensus. Referring to the electoral process in the Transnistrian region, Mr Sîrbu mentioned that the new draft law envisages the creation of electoral constituencies so as to include localities on both banks of the Dniester River, giving thus the possibility to citizens to cast their votes in the localities under the constitutional control of Moldovan authorities. Mrs Rebecca HARMS, MEP (Greens/EFA) On the specific issue regarding Transnistria, Mrs Harms mentioned that the proposal of changing the electoral system would create problems regarding the reliability of registers and also the transparency during the electoral process. Mrs Harms also declared that a joint proposal on the electoral reform (based on the recommendations of the Venice Commission), drafted by the civil society and the political groups, would bring much more peace to the political situation in the Republic of Moldova. Mr Tudor DELIU, MP (LDPM) As an answer to MEPs questions, Mr Deliu mentioned that the draft law on amending the electoral system did not contain details on the creation of electoral constituencies for diaspora, since there were no official statistics data on the number of citizens living abroad. Mrs Oxana DOMENTI, MP (Party of Communists) Mrs Domenti supported Mr Deliu s arguments. At the same time, the MP noted that the modification of the electoral system would have a negative impact on the weight of women in the next Parliament, because the uninominal system actually discourages women s access to Parliament. Mrs Domenti stated that the law on gender equality was amended during the current legislative term, with a minimum representation quota of 40% for women in the party lists. 7

8 9. Public administration reform Mr Corneliu PADNEVICI, MP (DPM) Mr Padnevici referred to the implementation of the Public Administration Reform Strategy for and the implementation of the Action Plan for the Public Services Modernization Reform for In this context, the MP mentioned the establishment of the public institution Public Services Agency, as a result of the reorganization of five public entities, such as the State Information Resources Center Registru, the State Registration Chamber, the Licensing Chamber, the State Enterprise Cadastru and the Civil Status Service. At the same time, Mr Padnevici referred to the draft of the new Law on Government, which envisages the reorganization and the restructuring of the current 16 ministries into 9 and the considerable reduction of the number of agencies and other central public institutions, many of which fall under reorganization through merging. In conclusion, the MP noted that the administrative decentralization to ensure local autonomy remains one of the priorities and objectives of the Republic of Moldova. Mr Andrzej GRZYB, MEP (EPP) In his speech, Mr Grzyb referred to the remuneration, qualification and training of civil servants, which directly influence the quality of provided public services. Another important issue is ensuring good cooperation between public administration services and civil society. For example, the creation of a one-stop shop for registering businesses for small and mediumsized enterprises would bring direct benefits to the country s economic development. The MEP further referred to the decentralization of public administration, emphasizing that strong and independent local authorities would ensure a proper development of localities. Mrs Miapetra KUMPULA-NATRI, MEP (S&D) Mrs Kumpula-Natri highlighted that the process of digitization is very important and that the local administration should use this opportunity to place public information on the website, especially the information related to the local budget. 10. Cooperation with civil society in the implementation of the reform agenda Mr Dumitru FORNEA, EU Co-chair of the Civil Society Platform Mr Fornea welcomed the good cooperation of the Republic of Moldova - EU Parliamentary Association Committee with the Civil Society Platform. Mr Fornea further mentioned that, during the meeting of the Civil Society Platform, more issues were discussed, among which the electoral law, labour legislation reform, which is questioned by trade union organisations, the issue of the State Labour Inspectorate, as well as the merging of the Ministry of Agriculture with the Ministry of Environment that is seen as a conflict of interest by environment organisations, etc. Mr Ion GUZUN, member of the Civil Society Platform from the Republic of Moldova Mr Guzun referred to the debates of the Civil Society Platform of 22 May 2017, citing, among the covered issues, some progress in ensuring the independence of justice, fighting systemic corruption, and reducing the politicization of state institutions. Mr Guzun then noted that the Platform expressed its concern at the attempts of Moldovan authorities to rapidly adopt high-impact laws, clearly violating the rules and norms of decision-making transparency. In this context, the draft law on capital liberalization and fiscal amnesty, which was later abandoned due to political pressure from civil society organizations 8

9 and development partners, was mentioned. Mr Guzun also spoke about the adoption of the draft law on the modification of the electoral system, which, in his opinion, took place without the Government s approval, without the anti-corruption expertise, without the parliamentary committees opinion and without being discussed at the Parliament s Standing Bureau. In conclusion, Mr Guzun suggested that representatives of public and political authorities and media institutions refrain from attacks on civil society organizations that are active, independent, and have critical views on the initiative to modify the electoral system or any other law. 11. Consideration and approval of Joint Statement and Recommendations Amendments to the draft were discussed. The draft joint statement and recommendations were approved by voting procedure. 12. Any other business Concluding remarks by the Co-chairs of the EU-Moldova PAC The meeting closed at 18:00. 9

10 LIST OF PARTICIPANTS Fourth EU-Moldova Parliamentary Association Committee Meeting Monday 22 May 2017, 13:00-18:00 Chişinău, Parliament of the Republic of Moldova, Europe Hall Members of the Parliament of the Republic of Moldova Mr Mihai GHIMPU, Co-Chair of the Committee Mr Igor VREMEA, Deputy Chair of the Committee Mr Iurie LEANCA, Deputy Chair of the Committee Mr Serghei SIRBU, Member of the Committee Mr Tudor DELIU, Member Mr Corneliu PADNEVICI, Member Mrs Oxama DOMENTI, Member Mr Gheorghe MOCANU, Member Members of European Parliament Mr Andi CRISTEA, Co-Chair of the Committee Mr Andrzej GRZYB, Member of the Committee Mr Knut FLECKENSTEIN, Member of the Committee Mrs Miapetra KUMPULA-NATRI, Member of the Committee Mrs Rebecca HARMS, Co-President of the Euronest PA Speakers: Mr Pirkka TAPIOLA, Head of the European Union Delegation to Moldova Mr Dumitru FORNEA, Co-Chair of the EU-Moldova Civil Society Platform Mr Ion GUZUN, Member of the EU-Moldova Civil Society Platform Mr Vladimir CEBOTARI, Minister of Justice Mrs Daniela MORARI, Deputy Minister of Foreign Affairs and European Integration Mr Sergiu CIOCLEA, Governor of the National Bank of Moldova 10